Question

Carla Vista Co. of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2019, the company’s Cash account per its general ledger showed a balance of $6,828.90.

The bank statement from Emporia State Bank on that date showed the following balance.

EMPORIA STATE BANK
Checks and Debits		Deposits and Credits		Daily Balance
XXX		XXX		5-31 7,058.00

A comparison of the details on the bank statement with the details in the Cash account revealed the following facts.

1.		The statement included a debit memo of $58.00 for the printing of additional company checks.
2.		Cash sales of $901.15 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $951.15. The bank credited Carla Vista Co. for the correct amount.
3.		Outstanding checks at May 31 totaled $294.25, and deposits in transit were $1,898.15.
4.		On May 18, the company issued check No. 1181 for $683.00 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Carla Vista Co. for $638.00.
5.		A $2,798.00 note receivable was collected by the bank for Carla Vista Co. on May 31 through electronic funds transfer.
6.		Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $342.00 that was incorrectly charged to Carla Vista Co.by the bank.
7.		On May 31, the bank statement showed an NSF charge of $470.00 for a check issued by Sara Ballard, a customer, to Carla Vista Co. on account.

(a)

Prepare the bank reconciliation at May 31, 2019. (List items that increase balance as per bank & books first. Round answers to 2 decimal places, e.g. 52.75.)

CARLA VISTA CO. Bank Reconciliation choose the accounting period                                                                      For the Year Ended May 31, 2019For the Month Ended May 31, 2019May 31, 2019
select an opening name for section one                                                                      Check printing chargeOutstanding checksError in depositError in recording checkCash balance per bank statementNSF checkBank error - TominsDeposits in transitAdjusted cash balance per bankElectronic funds transfer received					$enter a dollar amount
select between addition and deduction                                                                      AddLess:
	select a reconciling item                                                                      Error in recording checkAdjusted cash balance per bankCash balance per bank statementDeposits in transitCheck printing chargeError in depositElectronic funds transfer receivedNSF checkOutstanding checksBank error - Tomins		$enter a dollar amount
	select a reconciling item                                                                      Cash balance per bank statementDeposits in transitAdjusted cash balance per bankError in depositNSF checkError in recording checkCheck printing chargeBank error - TominsOutstanding checksElectronic funds transfer received		enter a dollar amount
					enter a subtotal of the two previous amounts
					enter a total amount for the first part
select between addition and deduction                                                                      AddLess:	select a reconciling item                                                                      Outstanding checksError in depositError in recording checkElectronic funds transfer receivedBank error - TominsNSF checkCheck printing chargeDeposits in transitCash balance per bank statementAdjusted cash balance per bank				enter a dollar amount
select a closing name for section one                                                                      Electronic funds transfer receivedError in depositNSF checkError in recording checkCheck printing chargeBank error - TominsDeposits in transitCash balance per bank statementOutstanding checksAdjusted cash balance per bank					$enter a total amount for section one
select an opening name for section two                                                                      Adjusted cash balance per booksNSF checkDeposits in transitBank error - TominsElectronic funds transfer receivedError in depositError in recording checkOutstanding checksCheck printing chargeCash balance per books					$enter a dollar amount
select between addition and deduction                                                                      AddLess:	select a reconciling item                                                                      NSF checkAdjusted cash balance per booksError in depositBank error - TominsOutstanding checksCash balance per booksElectronic funds transfer receivedCheck printing chargeError in recording checkDeposits in transit				enter a dollar amount
					enter a subtotal of the two previous amounts
select between addition and deduction                                                                      AddLess:
	select a reconciling item                                                                      Error in recording checkDeposits in transitNSF checkCash balance per booksError in depositElectronic funds transfer receivedOutstanding checksCheck printing chargeBank error - TominsAdjusted cash balance per books		$enter a dollar amount
	select a reconciling item                                                                      NSF checkOutstanding checksError in recording checkCash balance per booksError in depositElectronic funds transfer receivedDeposits in transitAdjusted cash balance per booksCheck printing chargeBank error - Tomins		enter a dollar amount
	select a reconciling item                                                                      Check printing chargeCash balance per booksError in recording checkError in depositBank error - TominsNSF checkElectronic funds transfer receivedDeposits in transitAdjusted cash balance per booksOutstanding checks		enter a dollar amount
	select a reconciling item                                                                      Error in depositBank error - TominsOutstanding checksDeposits in transitCheck printing chargeNSF checkElectronic funds transfer receivedError in recording checkCash balance per booksAdjusted cash balance per books		enter a dollar amount
					enter a subtotal of the four previous amounts
select a closing name for section two                                                                      Cash balance per booksAdjusted cash balance per booksNSF checkCheck printing chargeError in recording checkOutstanding checksDeposits in transitError in depositBank error - TominsElectronic funds transfer received					$enter a total amount for section two

Answer 1

Bank reconciliation
May 31,2019
Cash balance per Bank statement		7058.00
Add:
Deposits in transit	1898.15
Bank error-Tomins	342.00
		2240.15
		9298.15
Less: Outstanding checks		294.25
Adjusted cash balance per bank		9003.90
Cash balance per books		6828.90
Add: Electronic funds transfer received		2798.00
		9626.90
Less:
Check printing charge	58.00
Error in recording check	45.00
Error in deposit	50.00
NSF check	470.00
		623.00
Adjusted Cash balance per books		9003.90